Members of Horry Electric Cooperative have a share in the earnings of their electric cooperative. The rates paid for electricity are set to bring in enough money to pay operating costs, make payments on any loans and provide required equity. Revenues in excess of the cost of doing business are returned to members as patronage capital in the form of a capital credit check.
At the end of each fiscal year, an audit of the Cooperative’s financial statements is conducted by independent auditors in accordance with Government Auditing Standards that confirm the financial position of the Cooperative. The ‘margin’ is calculated by subtracting operating expenses from the total revenue billed during the year.
The margin is allocated to each member based on the amount each member was billed for electricity. Details about capital credit disbursement and an explanation of the calculation is published each year in the April edition of South Carolina Living. Each edition of the magazine is posted in the local page archives of horryelectric.com.
Member economic participation is one of the seven cooperative principles and it’s another way co-ops look out for their members.
Due to the expense of processing and issuing checks, Capital Credit refunds below $100 are credited to the individual’s electric account.
Moving? Be sure to leave your forwarding address with us so we can send your Capital Credit Check to your new location.
Do I need to report Capital Credits on my Income Taxes? Normally, you do not have to report your Capital Credit payment on your income tax return. However, if you have any questions concerning tax liability, please consult your tax preparer.
For more information about Capital Credits, contact our Capital Credit Accountant via email or by calling 843.369.2211. (Please remember that Horry Electric Cooperative is open Monday through Friday, 8 a.m. until 5 p.m. Telephone, fax and email communications sent outside of regular office hours will be responded to as quickly as possible the following business day.)
Search our UNCLAIMED CAPITAL CREDITS database.
Payment to the estate of deceased patrons – At this time, the only way an account can be ‘retired’ or refunded in full is upon the death of the member.